tv The Willis Report FOX Business December 10, 2012 9:00pm-10:00pm EST
tomorrow on fox news and this show with a star-studded cast marco rubio and many others alan simpson and it is up to be so be it.3 i will be at the white house and at the capitol. i will fix this. when i come back, the road will be saved. that is my promise. i will see you tomorrow from our star-studded capital. >> tonight the sec thinks the time to get rid of ccll phone bans on flights. wi the airlines agree? and despite the fiscal cliff, there are ny positives heading into 2013. we will tell you what the biggest one is. welcome to "the willis report."
hey, everyone, i am tracy byrnes in for gerri willis. the only have 2 days separate in the u.s. for more than $500 billion in x hikes. while both sides say the lines of communicationre open. getting a deal to avert the fiscalliff, president made it ry clear he is holding the line on hiking taxes on the top 2% of earners. customizing a little bit with republicans. ining us, ter barnes. what exactly ihe willing to compromise on? >> on the big item, the big kahuna. increasingaxes on families earning more than $2,000 per year story leaving the door open to a compromise on higher tax rates, higher rates. when anas repea ask repeatedly s demanding thtop tes return to the clinton administration in
and the top rate was 39.6, he does not say yes, have to have that to get a deal. but hes not backing f his demandrates up by some amount of wealthier falies so the buzz is he might settle or comprose forometng in between like 37%. there is speculation the prident might compromisen the cut off my degreand a higher threshold by 500,000 per year befe higher rates wouldld kick in. in a speech in detroit the presidt extended a little olive branch republans. >> have said i would work with republicans a pla for economic growt jobs creation and reducing our deficit and have some compromise between democrats and republicans, i understand people have a lot of different views, i'm willing to mpromise a little bit. >> the presi met with
speaker john boehner yesterd. not discussing any details of the conversations, just saying as you said athe top, lines of communications are open. also talking to senate majory leader harry rd today as well. everybody is talking but we don't have a deal yet. tracy:s anybody talking abou spending or entitlements, peter? >> there making it pretty clear. one statement we got from speakejohnoehner's office today was that the republicans contininue to wait for the president to make specific propals for cutting snding.3 that is at they want. acy: we don't sound any closer to me, but again i am skeptical. down in d.c. grea thanks. traay: the president is going to @ompromise as peter just said. what are republicans willing to compromise on. we have got to ask mike leef
utah. i am sorry i am so skeptic. 58% of america don't think w will reach a deal. where do you feel about this right now? >> it is difficult to predict at this point. i don't think anyby wan wants to go off a cliff except the president. he might n only allow it to go there, but perhaps push off has manifested last week by the decision t dop kick john boehner's offer. the tentative proposal befor reviewing it. witheven offing a counter proposal. it is difficult to predict at is poi. we don't want that to happen americans don't deserve to have that. acacy: it seems to me the conversation from senate democrats and house republicans. the senate republicans seem to be getting lost in the shuffle here. >> certaininly isn't an ideal methodf developing pollcy behind closed doors with a few pele involved,t is troubling
to a lot of my cstnts. tracy: what do you think about what republican senator said yesterda actuallyave a sound bite we should take a listen. saying taxes should up. take lsten. tracy: a lot of people are putting forth a theory i think it has merit where you give the president e 2% increase he is talking about on the top and all of a sudden the shift goes back entitlement. tracy:o what do you thk about that? almost like wi give you the 2%%but you he to give us the entitlents, that just never ems to w work. >> i disagree with that approach. i dot thwe ought to be raising taxes right now. threason we say that it's no because we're worried abt the rich, we're worried about what tax increases to theich wi do fohardware aricans. those a peoplamong the 700,000 who would lose their bs even if we raise taxes only on the 2%.
tracy: is there anything you're willing to come to the middle on? >>e can come to the middle where the democrat f from illins said a f months ago we ought to extenthe current rate peaps a year or so we can come to the table a unnertake a comprehensive tax reform effor one that i designed tt reform and simplify our existing buddy holly era tax ce that occupies tens of thnds of pages now but has ever read. tracy: iis one big book of favors. others on the line for so many americans in particar alternative minimum tax ttat could affect 33 million taxpayers. we have not heard a word about that. ooher discussion of that or any other extendersike the r&d credit, those are all on the table seto expire. speaker yes. those ancountless other tax issues on the table set to
expire, those are ings that are going to hurt hard-working american we have to stay focused on t fact this is not about worrying about the rich. this is about protecng hard-working americans who stand to face job losses and diminished wag if the tax increasetake effect. tracy: the problem r a lot of people at home, th is wh we seem to be really good at, we can kick the can down the road likeele. we are good at this, but the fiscal cliff conversation coming up in ju and a year from now if we do exnd, we will be having this coersation all over again. when does it getone? >> i'm not talking about kicking the can ast relates to spending, but i am with taxes. they are different and it does relate to the fact we have a tax code so bloated, so distord, soomplex it oduces inconstent revenue stream. 18.5% of gdp is what it produces on average. itit remains relatively constant
regardless of yo topper to 70%% by three decades ago or 35% as it is now. what we want and what we need is x code with a study, stable stream of somewhere in that neighborhood. something stable and consistent tracy: before let you go, senator, are we going over the cliff? >> it is too early to tell, can't make that prediction. i've learned not to make such predictions in this town, it ly gets you in trouble. tracy: only 21 days, it can't be too ely. thank you for taking the time with us. >> thank you. tracy: early? i don'tnow. a lot more to come including the future tax reform. we actuallcan we actually get am that makes sse ife don't go over the fiscal cliff is an even bigger recovery on the way? our next guest says yes.
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tracy: prices on the rise over the last six months and homebuilder confidence of the highest level six and a half years. many believe there is some sort of a housing rebound in the works, bieve it orot. r next guest says the key driver boosting the economy next ar will be a housing recovery. he could explain, charles scab chief investment strategist. i'm glad you ar you're here bece you're a breath of russian air. optimism. you think 2013 actually could be okay. >> i think it could be okay no excellent.
the mortgage deductionieces per the fiscal cliff could throw a short-term wrinkle in there. domestic energy a huge boom in the economy right now. there are some bright spots. the probm iso add them all up and it still does not come anywhere near what the consumer represents in the economy. i don't think it will be a drag on the economy for the ongoing leveraging still necessary, income growthhfairly we relatively slow job covery, that these of the economy is still likely to be slow growth mode. tracy: a fiscal clf is drag on confence whether y understand the implications of it or n, just hearinit is enough to make you want to hide under your pillow, right? what is your thought on this? consumers have not so much been whistling past the graveyard on the issue, only more recently, to the realization of what this could possib mean for them and t
also some positive to foc on which his housing and gasoli prices. businesses have been deang with the uncertain ftor for many months now. the only potential good news is we might have front end loaded the business side with capital spending. that could mean a quilt spri into 2013. tracy: u.s. companies are leaner and meaner annthey have been probably in my lifetime but there is ts looming fiscal cliff. do you ink we will get a deal before the end of the year? >> i have absolute no idea. there is low hanging fruit. strongly both sides not want to see thether 30 some million people as married der it. there could be so low hanging fruit. they coulwe cld get some sort of compromise onhe bush tax cuts, but there is a two-stage process and we are only focused on the first stage representing the
deadline just getting some sort of a deal. the extent we get one, there is breath of relief and then we start to look at the details of whatever the deal is in t implications for the economy for the market and corporate earnings and a those things. i think we're not quite at that stage yet. tracy: we have a meeting on wednesday, we will hear results of q4, more stimulus, what do you expect to hear? >> operation twist, the fed selling so of the dated securities to buy longer dated securities to brinlong-term interest rates down pires at the year-end. they want to bring more stimus in the picture, not letting it expi which would in essence be a drag. it is really not relevant, but likelydd out right treasury purchases to the mortgage-backed securities they are purchasing under qe three. a provisioof additional liquidity.
tracy: will it be necessary? the law of diminhing retns. or not getting the bang for our buck like we used to get. tracy: clearly not. clearly the stock market is the gauge of the success of quantitative easing. more than the fit couplef rounds and hap in the happen ton the big boost housing is because ices are starting to increase not as much on the mortgage side. we have record low mortgage rates with prices going up and that is e double incentive for homebuyers. you could argue that is more at play than what the fed has done. the fed will do somethings ultimately if we look back and said that was the elixir for the -@economy, less sure about that. tracy: that to get people t on the weekend looking at homes again. >> the chairman of our firm, that been in view he has expressed fairly publicll
certainly ng-term unintended consequences keeping interest tes down so w. th have promised they will keep rates low until 2015, what is the rus muscle to this thread with the ght financial institution, why go out if my competitors are not doing it. there isn't the fire under me. i don't think it is the consensus view but i have the syat for that. tracy: for the bank, what i want to lock in interest rates for 30 years at these low rates. everybody waiting to see what will happen. we are hopg housing will pull us out of this malaise and we did a little action on that end. >> let's remember housing can only do so much. how they represented about 6% gdp. it is only about two a .5% of gdp right now. although i think it will be a niceosite driver that has
been for five or six quarters now, itoesn't have quite the impact it did a few years ago. tracy: were so great, thank you. >> than thank you for having me. tracy: the names most often used with talk abouthe housing crisis, believit or not, you know him, fannie mae and freddie mac. making headlines again, so let's give you a refresher in two companies. then mae $116 billion from taxpayers. to be fair to pay some of that back. but they still owe nearly 88 early in dollar. freddie mac is not doi much better getting $71 billion going for $9 billion. they oweou and me more than $137 billion. but wait, here is some news the federal housing finance agency near the 2010 and 30
employees are taking home a paycheck for the median y is more than $2000. actually won six of the workforce, $200,000. what am i talking about. won six of the workforce not including senior executives like ceos making around $600,000 each year. it does incle more than 300 vice presidents with a median pay of nearly $400,000 per year. i'm naying people should be rking for free but when you're asking taxpayers to bail you o out, time and time again they ke doing this you need to do a little cutting at themains, the don't you think? fannie and freddie werenot pass to take money from tarp but they ask for hp almost ever quarter. you want help, go get an accountant. if they can show youow you're yr overspenng on your celery sticknd aig shout out to treasury, don't give them
another dime until they figure out how to do that. if you are fed up about this or any other issues on the progra drop us an e-mail. >> coming up on "the willis report," is it possible for our do-nothing congress to ease up on the tax code? senior vice policy analyst weighing in on all this and more next. and president obama touring michan debate is the home of the powerful unions could so become the 24th right to work state. what role if any will obama play in the fight? you and alec baldwin aren't the only ones who get upset on a plane when it comes to turning off ur cell phone. a new battle underway. we're on the case next
tracy: t tax man is coming back with a veeance. in 2013 regaress if wdrive off the fiscal cliff or not. it is force the nation's hardest workers believe itr not cough up more dough. the country's wealthiest put uncle sam competence fever. joining us now. the government made all his mistakes, so the really wealthy peoplean pay for it all. spk the whole point ist can fit the bill. we'll add $10 tllion of debt, doesn't obama taught no tax increases. we're talking cover the debt
overhat time. it is not enough to prent a debt crisis down the line. tracy: we have seen it timand me again. thougthe ability to wealth if y have access to important pple. ey don't have to pataxes after all. >> people don't work as hard as ithey otherwise would have,on't take risks so don't get the growth have not raised taxes. i think that's what would happen if we went with president obama's plan. they come it wl not grow as fast as it wouldave. sptracy: inevitably our xes wi go up because the wealthy do not pay asuch as the thought. >> there's not enougrevenue at the top to fit the bill. they still need to get bk to where they gets coming from, spending on entitlement programs as social security and mere.
tracy: we spent $270 billionn3 from 21,022,014 on this credit, how comee don't talk about th? >> there's a bipartisan agreement thathey like income tax credit, it is one oo the better proams so they have an agreemt but we will not go there as a way to ha tax reform, probably better for them. tracy: let's talk about tax reform in general, a we ever going to s this? the only way tdo it is to jump the book and start all over. >> we have been pushing for that for a long while now, but will t happen. president obama is talking about basically how tax reform would raise taxes on the middle class going back to the campaign for tax plan would raise the taxes. it is not going to happen. we have libels like "theew york times" rally around certai tax form saying
no and will not touc that. they did not want tax reform co it will not happen. tracy: we have not heard a word about that coming up in 21 days. >> busy expiration on the payroll tax cut, all of those extenders, this is all comg to a head. there's a lot of progress in washington right n, sot best talkg with dealing with the bush era policies and the rest is pushed even further into 2013. tracy: eve the extenders probably will get punted for a year or extended for a year. so here we are again this time next year we wwll have the same conversation.
>> that is just how it goes forward. we have to acc accepted is goine done. tracy:he only way to do this is to throw the book out a start oer. republicans offered it to them three times. fered it to them lastweek and turned it down flat. not interested forming the tax. i think we're in perilous time and we're down tthe wire. now's th is the time to put the legislation together. tracy: iris has to implement it and it is very scary. still come, should you be abable to use your cell phone oa flight? we will have a debate over that. aad president obama asking for his support for his fiscal cliff
tracy: we have fox business3 alert for you. the average price for a gallon of gas is limiting $0.11 er the last month. not at mgas station. current price $3.34 for regular gas. memphis, tennessee, has the lowest price fo gas, $3.04. believe it or not, and i believe it, long island, new york, has the highest $3.85.
many analysts are still blaming the effects of hurricane sandy. both surveys are saying prices will fall even further by the end of the year. mey christm. chigan, that earth place of unions might be a work to write state as early atomorrow. en the governor is set to sign a newly passed leslation. not stopping president obama from weighing in. slamming the bill as they give workers the right to work ls money. more on this, thank you f being with us. this goes bac back to the tax hy act. states have a rit to dthis, right? it see really odd to mthe president is getting involved at the state level like this.
>> you're absolutely right. one thing that should be ned out thission becomes the 24th right to work state, over the last decade right-to-work states have seen a net increase of 3.6 million jobs. union stes have seen a net decrease of 1 million jobs. this is a good thing, the voters voted forhis wn they knocked down a proposition on the ballot in 2012 essenally trying to enshrine union rightwith the state constitution. that is what they want to do. tracy: aa business whi they come to a state that is union? why would i want to de with those expenses on myalance sheet or my income? >> does not allofor you to run efficiently. we saw this with gm and recently we saw one thing you really should shock some people is in 2010 there were 13 sort of
chrysler workers who were fired for using alcohol and marijuana on the job making cars. two years later all 13 of them got their jobs back basically because of union backed arbitration ad let them go ba to work. union rules to not make a very efficient and what everyrybody s looking to d is basically to ban the automatic deductions from payrolls gointo union fees for those who don't join union workers. they're trying to be very pro-worker. tracy: let's face it. i don't want to be forced at work, don't want to feel as a woer so is good for metoo. it feels almost odd entire south is still union where you get your northeast states all rights to work. why is there such a division >> i really can't tell you, but it's postmarked d the mentality the workershould be freed to make their own decisions.
while republicans can push the bill through. obviously the unions and the uaw are crying uncle, but the time has come. tracy: union membership is falling precipitously. now you have political donations beinghe only reason the president is in this state backing this because otherwise there is not that many union workers left o there. >> that is absolut right. they he been the cft for the politicians to keep this scheme going and if you can take those who want the unions are not want their dues to be deducted it is going to crule because your cutting the head off the ske. tracy: thank you very much. i wanted to bringou the latest developments on storwe have been followingor like a year and a half now give the former international monetary fun
chief dominic strauss khan have settled a lawsuit over sexual assault allegations in a new york courtroom today. the settlements being kept confidential. aren'tou dying to know how much s got? stemming from a may 2010 unter that has been accusing dominic strauss khan of trng toorape her. criminal charges were dropped after osecutors had said the maid had credibility problems. i'm sure she still has some. dying to know. when we come back, and the beer taxes and many moves. and are you sick of being told to put your phone away while you're on a flight? that may all change, but should it? and find out what u tnk. we're coming right back.
tracy: member alec olin' tantrum over flight rule he got kicked off a plane for playing words with friends for being told to turn off all of the electronic devices. his outrage lives on after calling for major overha of the faa rules telling him t theo get with the times already. for more on this, executive vice president of the coalition of airline pilots association and fouer of airfare watcog.com join us n. captain, i will start with you first. seems to me the fcc chairman was a flight one day, misd e call and was likely have to change these rules otherwise wowod haveak themmso long? >> all else, how could we get a
situatiin that washington without something like that. tracy: why now? what have their phones on for years now, i always forget to turn ne down when they tell me to, the ane never crashes. >> ultimately we know this is a replacement has been around for a while, clearly the faa is lookg at, sec is interested in but there i there's a process i. better take this process in almost every approval making them begin to look at whether there's a new rulerom scratch or is it modification. the rulemaking process is noin play. announced they were forming an industry stakehoer group to look at the iss and those have historically taken times in seeing th done quickly, wod cauti people n get too far frt of tmselves because i would say we are in for a bit time before we see it happen in earnest.
tracy: there's allegedlsaid about somebody stuck with somebody they cann stand. >> do you wanto be woken up by my cell phone ring tone it, let me play it for you. at 2:00 in the morning on our flight? i think there will be fits on anes. already fights over the erhead bin space. people spilling onto other pele seek some measure which would be like when people are outing over the roar of jet engines saying can you hear me now. bad enough on the ground, i think we will end up in handcuffs. tracy: this ishere we are today. you don't put your phone down,
you can miss a cl, dng siness, business moves so fast to be on a five hour flight and have no contact with the outside world seems almost r. bar. >> has become part of the function of our dailyiving we had to be inouch electronicallyhether it is a cell phone or se other eltronic device we're used to having thewith us 24/4/7. that being said in this particular realm ith flight safety initiative pastor safety we have to move in a deliberate way and that is what they are made to do. unsuccessful happen at some point, but when we do it is done so irresponsible with no unintended consequences. acy: i agree. truth be told it does not actually afct the plan or the flight were the pil, weave sort of been lied to all long, haven't we?
>> as he sai people forget to shut off their phones and there have not been any crashes. it is probably not a safety issue. i do wonder if we are giving terrism another tool. the flight tracking is delayed by five minutes because of rules for security. i'm t sure the security concerns ar but only giving potential terroris another tool for safety reasons on the plane? real-timeps tracking they can communicate now with people on the ground. i may be completely off base, but i'worried about that. the technology is going to change. with the current technology is safeut will we monitor technology in the future if phones become re?
>> it is a fair debate. thank you, but i think the captain is onto something,e will eventually be listening to my fiancé ring tone on the flight. sorry. thk u both. we want to know what you think about all this. here is our questiononight, she pasngers are allowed to use their cell phones on flights? who will share the results with you at the end of the show. besides the annoyance of people talking next to you, some airlines allow you to set inhe lap of luxury. airlines make of the worlds best according to travel and leise magazine making up sites top ve. number five, pacific airways. the ho kong-based airways has power outlets and usb cords and the seats are really, really comfortable.
green air, most imoved from last year thanks to hold the . featuring dishes from all over asia. number three, the emirates. slipping a spot from last year due to negative comments o customer service that overall really high marks thanks in part to the shor and a. image. number two, air new zealand. being able to bid for an upgrade a week before you fly and they have a couple class. three seats that can convert to a bed. the number one bbst airline in the world, and a poor airlines. they have be numr one for 17 years in a row. flight attendants famous for their above and beyond approach. including a bedtime turn dn service for first-class suites featurg 2inch tvs. the u.s., believe it not virgin andetblue are the only
two to make the top 20. if only i could tell you about my experiences on virgin airlines. i cannot even imagine they would be on any list. still to come, that time of year again. timtime to start thinking about your money in 2013. the best year and many moves yo may not even know about. we will be right ba
tracy: whether congress and the president and rigid fiscscal clf deal before january 1emains up in the air. here with the tips, managing director of wealth held financial planning. i think it is an important point fopeopleo understand what the fiscal cliff aside, you have year-end tax plan. >> there is a usual thing you should still be doing every year. with the rates going up,ike a grown-up, there are more valuable than if you don't use them this year. tracy: many people wanting to save their gains, take the losses. >> everybody talks about tang again now, buying back, hire you don't want to accelerate10
texas unless you know you're going to sell those anyway. soon into 2013. if you have a concentrated position is a lot of risk to get out. the ne six to 10 months, accelerate. in a long-term investment, there's no reason i don't think accelerate the games to pay uncle sam early. tracy: if you are in a position is a short-term gain, would u buy it back in their retirement accounts like iras? >> it depds if there's going to be gain potential still lower than the rate. tracy: that is really important as tax rates go up. speak of the thing is the fiscal cliff is driving pple to get a little crazy but rality is the argument is over the highest bracket.
for most people it shouldn't matter thatuch. however do have a payroll tax increase likely by% for those making over 2,000 single or 250 joint will have the extra .9%. prop 30 creases, it is always a good year to look at bb holdings. is he a particular with all the moving parts. tracy: what about if they are yoha to pass a patch. you assume based on history? >> it is one of those things you have to wait and see. that is the one thing th is like a silent killer. it could hit a lot greater extent. tracy: as awful as it sounds, hire a veteran. >> absolutely. up to $960per worker.
the panel at the wage is going to be, $9600 to hire a veteran, for looking to hire people the ne couple of months, acceleratehaut peoe to work and g a great tax credit. tracy: thank you very much. >> you're welcom tracy: will be right back with my two centsore and the answer to the day. she passengers be allowed to use she passengers be allowed to use theicell [ male announc ] at scottde, you won't just find uonline, you'll also find us person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. becau personal service starts with a real person. [ rodger ] scottrade, seven dlar trades are just the start. our support teams areearby, ready to help.
tracy: oka so there are new reports om the fcc that shows ce phone use may soon be allowed on flights, but should passengers be allowed to use cell phones on flights in reality? here's what some of u are tweeting the ow. gavin writes: no. it's bad enough listening to them scream into their cell phes on restaurants. that's kind of mean though.
robert ss: if it it can be shown with data that it will not interfere with a flight's electronics, then, yes. where have you been? my phone's been on for a multitude flights. 30% said, yes, 70% said no on gerri willis.com. be sure to log on for our line question every weekday. now here's some of your e-mails. jimmy asks: tracy: yeah. put the washington monument there. bill says: